London pre-open: Stocks to edge up as Trump announces new tariffs
By Michele Maatouk
Date: Monday 10 Feb 2025
(Sharecast News) - London stocks were set to rise at the open on Monday but gains were likely to be muted as investors react to US President Donald Trump's latest tariff announcement.
The FTSE 100 was called to open around 10 points higher.
Kathleen Brooks, research director at XTB, said: "As we start a new week, there are another round of tariffs for markets to price in. Trump has announced plans to slap 25% tariffs on imports of steel and aluminium from Monday, at the same time as China will place tariffs on $14bn of US goods, in retaliation for the US's 10% flat tariff on all Chinese imports.
"While $14bn in trade terms is fairly small, the symbolism will have more impact on market sentiment. It highlights the fact that China and the US could not agree on a plan to move forward without tariffs, and essentially starts a new trade war between the two largest global economies.
"Hopes that the US could roll back on tariffs like it did with Mexico and Canada were dashed, and the new measures from China will also include export restrictions for rare earth minerals, which are vital to produce smart phones, some chips, batteries and infrastructure for renewable technology, which could weigh on tech stocks at the start of this week."
In corporate news, Kosmos Energy said that the first liquified natural gas production has been achieved at the BP-operated Greater Tortue Ahmeyim project, offshore Mauritania & Senegal.
On December 31, 2024, gas from the first phase of GTA started to flow from wells to the floating production storage and offloading vessel as part of the commissioning process. Kosmos will start to recognise gas entitlement production from the project in its quarterly statements once gas is liquefied.
Chemicals group Johnson Matthey announced that its chair of seven years Patrick Thomas will step down later this year, while its chief financial officer of four years will be replaced by the head of finance at DS Smith.
The changes come as the business "enters the next phase of its transformation strategy to deliver a step change in cash generation, higher returns on capital and sustainable shareholder value," the company said in a statement.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN